More than ever, good governance, smart management crucial

The rapid growth in defined contribution (DC) plans began in the early 1990s, coinciding with one of the strongest bull markets in history.

The recent slowdown in financial markets, coupled with highly publicized scandals involving the DC plans of some major U.S. corporations, are causing some DC plan sponsors to question whether they are doing the right thing.

In fact they are. DC plans are an appropriate choice for many plan sponsors, but the challenges need to be managed carefully.